All of the following costs are inventoried under absorption costing except:
A)direct materials.
B)direct labor.
C)variable manufacturing overhead.
D)fixed manufacturing overheaD.
E)fixed administrative salaries.

Question

Quizplus · Accepted Answer

Only variable manufacturing overhead and fixed manufacturing overhead are inventoried under absorption costing, while direct materials and direct labor are always included in the cost of goods sold. Fixed administrative salaries, on the other hand, are considered period costs and are expensed immediately.

All of the Following Costs Are Inventoried Under Absorption Costing